Whether buying on the beach in WA, or investing in a property in regional NSW, there is not one single property market in Australia but hundreds of micro markets. Here’s our market forecast for the coming year to give you a kick-start into 2019.
When it comes to the property market, it can be a challenge to find clarity on when to make the right moves – literally. That’s why we’ve talked to Aussie’s State Managers to get the inside scoop on what they think 2019 will hold for their markets. Here are their 2019 predictions.
NSW, ACT, QLD and SA could see regional growth
Across multiple states, Aussie’s State Managers predict a move outward from inner city living to more regional areas for both investors and homeowners. “The outer regions are more realistically priced for first home buyers and therefore I expect stronger demand there compared to inner city,” says Eleanor Blewden, NSW and ACT state manager. Specifically, Eleanor predicts growth in Illawarra, Shoalhaven and the Central Coast regions.
For Queenslanders, State Manager Matthew Whyte forecasts a similar trend. “We’ve had a couple of flat years in Queensland, but this year, I’m expecting some real opportunity for growth in the Brisbane area and some of our regional areas as well.” Matthew believes towns around Mackay, the Sunshine Coast and the Gold Coast could experience growth.
In South Australia, State Manager Aaron Hockey connects regional growth with business and technology hubs emerging in regional pockets. He predicts this trend could appear in the Western Suburbs and Hills area. “The Adelaide Hills region is still relatively cheap given its proximity to the CBD and also the space that it provides. I think the Western Suburbs, specifically Osborne, could also see some significant property price increases, especially where there are jobs being created.”
We might see steady investment opportunities across the board
Investment opportunities may continue to flourish across each state, particularly as more developments arise. “There’s still a lot of investment activity in the market – we’re talking multibillions a month in investor settlements,” explains Eleanor.
Aaron agrees, “For an investor, you could consider looking for those golden nugget suburbs where you could invest and see some returns.” According to Eleanor, interest in migration to Australia fuels the Australian property market, “I expect migration and population growth to continue, and as long as we’ve got that, on its own, I believe there will continue to be ongoing demand for property in Australia.”
Australia’s federal election may create uncertainty
Of course, May brings the 2019 federal election, which according to Western Australia’s State Manager Simone Ellul, is important for prospective buyers and investors “both in terms of general economic outlook, and the policies the winning party implements.” Eleanor predicts this could create uncertainty, “We’ve seen the market slowing down over the course of the last six months and I think that may continue through the year,” she explains. “Due to the election and amount of uncertainty, internationally and politically, sentiment may become subdued and I think the property market will follow that subdued trend line.”
VIC and TAS State Manager Glenn Edwards agrees, explaining events like these can make it more challenging to borrow, but advises those interested in entering the market not to lose faith. “There might be a little bit of pain in the short term and the maze of trying to get a home loan could become more complex, so my advice is, maintaining a great relationship with your Aussie broker is key navigating it all for 2019.”
There’ll be interstate migration movement by home buyers
According to our State Managers, 2019 may see a fair amount of interstate shuffling. Matthew predicts an increase in Queensland’s population as first home buyers and investors make the move from Melbourne and Sydney. “We haven’t had those surges or booms that the southern states have and I think that’s very appealing to people from there,” he explains. “I think markets such as the Gold Coast could experience resultant growth as it’s somewhere where people want to come and live and enjoy the lifestyle.” According to Simone, the same goes for WA, where current dwellers or those making the move interstate “Can expect significant opportunities to purchase at or near the bottom of the market, with predicted capital growth in the years to come.”
Pragmatic buyers will be rewarded
While the property market has slowed in some cities over the last six months, 2019 brings a lot of opportunity for variability and our Aussie State Managers recommend having a sense of perspective around what it means to enter the property market, and staying pragmatic in the way they approach it. “With our population continuing to grow, there’s obviously going to be continued demand for housing. So while we see it softening a bit at the moment, it’s not all doom and gloom – if we continue to see population growth and migration, I think there’ll always be demand for property,” explains Glenn.
“Buying property can be a purchase which is long term, so it’s about knowing your reasons to enter the property market, and knowing there will be peaks and troughs along the way,” says Eleanor.
What are your predictions for 2019? Feel free to share in the comments section.